VAT rate cut: who’s passing it on? And who’s keeping it to themselves?

By Aisling | August 3 2011 | 59 Comments


So the VAT rate fell from 13.5% to 9% on July 1 as part of the Jobs Initiative in an attempt to give the hospitality and tourism sectors a break.  It was expected that this rate cut would be passed on to the consumer – restaurants and hairdressers etc would be less expensive, thus stimulating trade and creating a win-win for everyone.  The Irish Hotels Federation and the Restaurants Association of Ireland have both urged their members to embrace this initiative and pass on the cuts. has the full details and here’s the list of those that got their VAT rate snipped:

Supplies of goods and services at the new 9% rate:

  • the supply of food and drink (excluding alcohol  and soft drinks) in the course of catering or by means of a vending machine
  • hot take-away food and hot drinks
  • hotel lettings, including guesthouses, caravan parks, camping sites etc
  • admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions
  • amusement services of the kind normally supplied in fairgrounds or amusement park services
  • the provision of facilities for taking part in sporting activities by a person other than a non-profit making organisation
  • printed matter e.g. newspapers, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books)
  • hairdressing services (Note: beauty treatments:- for example, facials, massages, nail treatments, tanning or sunbed services etc., remain liable at the 13.5% rate).

Unfortunately it wasn’t a legal requirement that the decrease be passed on to customers – and as a result it seems as though very few businesses have cut their prices.

Who have you noticed cutting their prices (Peter Mark gets my shout out here) – and who have you noticed definitely hasn’t?

If a business hasn’t cut their prices does this put you off going to them?  Any restaurants you’d recommend on the basis of this – how about cinema tickets, or a late night one and one from the chipper?

Tell us in the comments!

On a Budget ,

59 Replies to "VAT rate cut: who’s passing it on? And who’s keeping it to themselves?"

  • Kirstie says:

    I must give a shoutout to Dyflin (who I work for) because they reduced the price of all their mags – prudence, house and home and confetti – in line with the VAT reduction.

  • LauraLou says:

    Mc donalds has… ha shows where my head is at! I was very annoyed Trim castle hotel didnt, and they were very pushy for me to book at room, at €110 a night! Not a chance!! Cinema hasnt.. its shocking, its €10 in vue in liffy valley my local cinema, then me an my bf went to tullamore cinema and it was €6.20 .. its ridiculous!!

  • Kirstie says:

    Also StorBOCKS has, noticed that the last time I bought a latte from them (to be pronounced late)

    actually it was an americano,I just wanted to say late. And cup of chino.

  • Kirstie says:

    am sure they have also reduced the price of their yhammy mhaffans

  • soph & glory says:

    The Omniplex Cinema in Santry definately has! Was pleasently surprised!

  • lainey316 says:

    My hairdresser was €58 this time down from €60 last time.

  • blondie says:

    Kirstie…don’t forget the price of an EXpresso…argh that one drives me mad!
    ooh I’m off to Storbocks now (or Bucky’s as Ross O’Carroll Kelly calls it) the VAT drop only gives me more excuses to go to the place. Will try to resist the lahvley maahhfins.

  • Lenuska says:

    I work in accountancy office and to be honest the Vat reduction is such a small amount in the end. I noticed that some Irish magazines like U taken down the price and place where I go sometimes for lunch doesnt charge 10 Euro but 9.60 instead (or something like that) – you would hardly take the change back anyway. I see so many businesses strugling, if this small difference help them to pay of some loans that most of them have or hire extra part timer or keep going at all, I will happily keep paying the same price. Now I am talking mostly about small local businesses not about overpriced hotel chains etc.

  • blondie says:

    Have only clearly noticed this in Peter Marks & Starbucks. But then again they are advertising it clearly & I haven’t gotten out much lately! Oh and a couple of local hairdressers too. Fair play to them. Was too hungover & dying for my chips to even check in the local chipper the other nite. In that state I would have paid anything :)

  • Kirstie says:

    Oh EXPresso is my favourite pic me up

  • Hellsbells says:

    Well considering Cineworld just put their prices up to €11 they could do with being reduced!

  • blondie says:

    Lenuska that’s a fair point about small businesses. At first when I heard that point made on the radio I was a bit ‘no way, feck it, consumer comes first’ but really if it means it keeps more small businesses open in local communities (employing people) then it’s better for everyone in the long run.

  • Steph says:

    Lunatic Fringe on Grafton St have put their prices up in the last 6 months not to mind any VAT decrease! Will be going elsewhere for my next chop.

  • @LauraLou My cinema has dropped there prices but my mcdonalds havent ha ha !! :)

    As a i work as hairdresser Iv had the question “have you dropped your pices with the vat ?” and the answer is No !!

    Now the drop isnt up to me as im not the boss but i do no the goverment havent dropped the hairdressing costs , we still pay 21% vat on all supplies and they have increased insurance prices, water charges ,rates etc we even have to pay to have the radio on in the salon !!

    The Smaller salons cannot afford to lower there prices anymore than they have already even with a 9% vat cut because they have risen everything else , customers dont see that and i dont think the goverment does either !! They ought to cut the rates for a few years and give salons a chance to pass on the benefits to the customer No point in lowering one thing but putting everything else up !! :) x x phew that was long

  • JLo says:

    I’ve only noticed peter mark and the cinema in pavillions in swords, which is now around €6.50 a ticket, whereas UCI cost me around €10 last week…. tsk

  • blondie says:

    Kirstie, I know it’s infuriating, esp when someone who actually WORKS in a cafe says it. It’s along the line of MilanoS et al….ok I better calm down or I could go off on one & hijack this thread. I seem to remember a thread about that awhile back, will go & read that! :D

  • Fifibelle says:

    The hotel we got married in, the Hamlet Court in Johnstownbridge, passed on the VAT reduction to us, we were so lucky, as we got married July 1st, would have been raging if we had missed it!!

  • LauraLou says:

    fifibelle- thats a lovely hotel :)

  • ZsaZsa says:

    House of Colour, The IFI and Bewley’s have all reduced the VAT rates

  • ZsaZsa says:

    …sorry I mean passed on the VAT rates

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